Export Restrictions on Strategic Raw Materials and Their Impact on Trade and Global Supply

(WTO – Frank van Tongeren et al., OECD)

This paper examines the presence and impact on trade and global supply of export restrictions applied to selected metals and minerals. The strategic metals and minerals selected for this study have a number of shared characteristics which in turn determine their impact. Their exploitable mineral reserves are generally found in one or a few geographical regions of the world implying that their potential mining and export are concentrated in a few countries. For most of these strategic raw materials, the top three producing countries account for over half of world production. In some cases, production is so concentrated that over half of world production occurs in a single country. This in turn leads to a dependence on such imports by countries that consume these materials or the finished goods produced from them. It also suggests that countries producing these raw materials may influence their prices and quantities made available on world markets.

The metals and minerals in this study are generally used as inputs into high-technology or strategic sectors. Although often needed only in small quantities, these metals are increasingly essential to the development of technologically sophisticated products. They play a critical role in the development of innovative “environmental technologies” to boost energy efficiency and reduce greenhouse gas emissions. Hydrogen-fuel based cars, for example, require platinum-based catalysts; electric-hybrid cars need lithium batteries; and rhenium super alloys are an indispensable input for modern aircraft production. In addition, there are few substitutes available in the short-term for these raw materials. Read more here.